AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

2/12/2025: Gold steady after hot CPI

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold was nearly flat, dipping 0.1% to close at $2,909, as safe-haven inflows driven by trade-war fears offset pressure from sharply higher Treasury yields driven by hot CPI data. Silver gained 1.5% to finish at $32.70 an ounce.

The consumer price index rose 0.5% in January, the most in 18 months, lifting the annual rate to 3%. The so-called core rate, removing food and energy costs, increased 0.4% to lift the annual rate to 3.3%.

The hotter-than-expected data shifts the outlook for interest rates. Fed Chair Jerome Powell told the Senate Banking committee yesterday that the Fed was in “no hurry” to cut rates further. Coupled with the inflationary threat of pending tariffs, today’s CPI release could spell the end of the current rate-cut cycle altogether.

The White House said today that reciprocal tariffs will be imposed this week on all trading partners who impose tariffs on US exports. The new levies come atop the 25% to be applied to all steel and aluminum imports and the 10% on Chinese imports. An additional 25% on all goods from Canada and Mexico are on temporary hold.

Benchmark 10-year Treasury yields jumped by nearly 10 basis points, the most this year, to more than 4.6% on the hawkish rate view. Higher yields typically weigh on gold by increasing the opportunity cost for holding it instead of bonds. But today this headwind was offset by demand for bullion as a hedge against the economic uncertainty and inflationary pressures of Trump administration trade policies.

Platinum picked up 1.2% while palladium fell 0.6%.

At the New York spot close: gold dipped $3.50 to $2,909; silver surged 47 cents to $32.70; platinum rose $11.80 to $1,038.70; and palladium shed $6.10 to $980.80 an ounce.